Workers at Nokia’s Chennai-based factory went on another hunger strike today. Concerned about their jobs and future, the employees boycotted the canteen and decided not to have any food. Though, no work was affected, as the workers did do their jobs.
Nokia is facing several tax issues with the Indian government. As Nokia’s acquisition deal is nearing its completion this Friday, the phone manufacturer is yet to resolve its tax issues over the Chennai-based factory with the local authority. Over the last few months, Nokia has downsized its production at the Sriperumbudur plant, and moved away the equipment to its other factories located in Vietnam and China. These sudden moves have left the employees of the Chennai factory worried about their jobs.
The plant employs around 8,000 employees and over 21,000 contract workers. "We are worried of the situation. The management is not giving us proper reply on the fate of the factory or the job security of the workers," said Kumar.
Around 700 trainees are accepting the VRS that Nokia offered earlier this month, and will be leaving the company as part of the deal. Sources have revealed that the VRS includes gross salary of 3 months along with Rs 2 lakh (~$3300) as a compensation amount. However, the vast majority of employees want to keep their jobs, in place of accepting the VRS which requires them to voluntarily leave the company.
While Nokia’s acquisition deal is expected to close this Friday, the Chennai plant is likely to not become a part of the original $7.2 billion deal. This might affect the original terms of the deal.